Society is always changing. And with society's growing heavy reliance on the internet, many IT career opportunities are emerging, which has led to more and more work-at-home opportunities where employees don't have to step one foot out of their own home to get their job done. In fact, as many as 1 in 12 Australians already work from home. Many Australians who work from home would consider themselves to be operating a home business. If you're one of these people, tax time can be a headache. It can be difficult to understand the type of deductions you are entitled to. Here are 3 particular strategies that will help you maximize your tax return.
Stock Up on Stationery
You can claim revenue expenses on your tax deduction to maximize your tax return, as long as the expenses are made in the same income year that is being reported. Revenue expenses involve anything and everything that is incurred in the everyday running of your business. In particular, take note of office stationery. Even if you work at home, there's a good chance that you will require stationery. This includes pens, pencils, erasers, paper, and even ink if you are constantly printing out paperwork.
One of the easiest ways that you can maximize tax returns is to stock up on stationery for the coming year before you file your tax returns. Stationery expenses can be deducted from the amount of taxes your business owes and maximize the returns your business is entitled to.
Write Off Bad Debts
Are you still waiting for someone to pay you? If there's a good chance that you're not going to get paid by a certain client or customer even after chasing them multiple times for payment, you might want to consider writing off the debt prior to filing your tax returns. This will help you reduce the amount of income that is being reported. As a result, this will maximize the amount of tax returns you'll receive.
Depending on how much is owed, you might want to consider selling the debt to a tax collection agency or even having a tax collection agency go after the debt. If the debt owed is a relatively small amount, it may not be worth it for you to collect. In which case, speak to an accountant to determine how you can write the debt off.
Review Business Structure
If you have a registered home business, you should also review the type of business you operate and the type of structure you are relying on. Each year, small, minor changes that you make to your business structure may make you eligible to change the type of structure your business is registered under in order to enjoy better tax benefits. An accountant can help you review the specifics to help you make a better and more informed decision.
There are many strategies that you can implement in order to maximize the amount of tax returns your business is entitled to. Prior to submitting your tax information, speak to an accountant and have him or her review your file. There may be many other deductions that you are unaware of but are eligible for.Share